West Bengal could soon witness one of the largest investments in its dairy sector as dairy giant Gujarat Cooperative Milk Marketing Federation (GCMMF), the owner of Amul, is reportedly in advanced discussions to invest nearly ₹650 crore in the state. The proposed investment is expected to facilitate the establishment of Amul’s first fully owned dairy processing plant in West Bengal, marking a significant milestone in the cooperative’s expansion strategy across eastern India.
Amul Strengthens Its Presence in Bengal
The development comes amid strong growth in Amul’s business operations in West Bengal. According to industry sources, the company is currently selling nearly 11 lakh litres of milk per day (LLPD) in Kolkata, making the city one of its fastest-growing markets in the country.
Simultaneously, milk procurement across the Bengal region has increased to approximately 9 LLPD, reflecting Amul’s growing engagement with local dairy farmers and cooperative networks. The rising demand for dairy products and expanding procurement capacity have encouraged the company to explore a dedicated processing facility within the state.
Multiple Expansion Models Under Evaluation
Sources indicate that Amul is assessing several locations across West Bengal for the proposed project. The cooperative is considering two different approaches before finalizing its investment plan.
One option involves establishing a large, centralized dairy processing plant capable of serving multiple districts and supporting a wide range of dairy products. The alternative model focuses on developing a network of smaller feeder plants strategically located across the state to improve milk collection efficiency and streamline distribution.
The final decision is expected to be based on factors such as milk availability, transportation infrastructure, logistics costs, regional demand, and long-term scalability.
Why West Bengal Matters for Amul
West Bengal has emerged as an increasingly important dairy market due to rising urban consumption, changing dietary habits, and growing demand for packaged dairy products. Kolkata, one of eastern India’s largest metropolitan centers, has been a key driver of this growth.
The city’s estimated daily milk sales of nearly 11 LLPD demonstrate the scale of consumer demand. At the same time, increasing procurement levels suggest that Amul is building a stronger local supply chain by partnering with dairy farmers and producer groups throughout the state.
A fully owned processing plant would enable the cooperative to reduce transportation costs, improve supply chain efficiency, increase product availability, and respond more effectively to growing consumer demand in eastern India.
Economic Benefits for the State
If approved, the ₹650 crore investment could deliver substantial economic benefits to West Bengal. The project is expected to generate direct and indirect employment opportunities, strengthen dairy infrastructure, and enhance rural incomes through expanded milk procurement.
The investment may also encourage greater participation of local farmers in cooperative dairy systems while supporting the state’s food processing and manufacturing sectors. Improved processing capacity and supply chain networks could further position West Bengal as an important hub for dairy production and distribution in eastern India.
Looking Ahead
As discussions continue, industry stakeholders are closely watching where Amul ultimately decides to establish its first fully owned dairy processing facility in West Bengal. If the project moves forward, it could become one of the most significant developments in the state’s dairy industry in recent years, reshaping milk procurement, processing, and distribution networks while creating new opportunities for farmers and consumers alike.
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